A group of investors in the JENNER memecoin has filed a class action lawsuit against Caitlyn Jenner, accusing her of making «false and misleading statements» about the token. Caitlyn Jenner — is a transgender woman and is considered the world’s most famous transgender person. Birth name — William Bruce Jenner, a successful track and field athlete and father of 6 children. Caitlyn — Christian, conservative, actively supports The Republican Party and Trump.
The documents state that JENNER can be considered unregistered securities on certain grounds. Nayyem Azad and Mihai Caluseru, citizens of the United Kingdom and Romania, respectively, filed a complaint in a California federal court on November 13. They allege that Jenner and her manager, Sophia Hutchins, «fraudulently induced financially inexperienced investors from the United States and abroad» to purchase unregistered securities.
The plaintiffs added that they lost over $56,000 investing in JENNER on the Ethereum and Solana blockchains. They claim that they would not have done so but for «Jenner’s false and misleading statements and omissions. The lawsuit states that Jenner «knowingly failed to register the» token with the U.S. Securities and Exchange Commission (SEC), causing «investors to suffer significant losses» without having complete information to objectively assess the risks.
The JENNER memecoin was first launched on Solana in May through the Pump.fun platform, but soon Caitlyn Jenner and other celebrities claimed that they were deceived by promoter Sahil Arora. Later, the token was relaunched on Ethereum. But since then, its total market value has fallen from $7.5 million to $271,000.
«Jenner seems to have effectively abandoned the project and is no longer promoting memecoin, leaving investors alone with large losses. It is unlikely that these losses will ever be recovered», — the complaint says.
The lawsuit also claims that Jenner «promised» not to relaunch the token, but subsequently relaunched it on Ethereum, which led to a sharp drop in the value of the original token on Solana. Azad and Caluseru believe that Jenner added a 3% «tax» on each transaction, but did not disclose this information, which they say enriched her significantly.
Jenner was charged with violating securities laws, as well as fraud. Hutchins is also named in the lawsuit as a suspect in the fraud.
Against the backdrop of this information, the price of the JENNER token almost halved: from $0.00059 to $0.00027 and continues to decline.
Promoter Sahil Arora, who is behind many celebrity token projects, earned about $30 million in 2024, according to an investigation by experts at the Bubblemaps platform.
Arora was born in India. In 2017, when he turned 18, he launched Vuzelaa Group, a cryptomat company. Between 2020 and 2023, the promoter implemented more than 10 crypto projects. At the same time, the tokens of most of them have actually depreciated. For example, the value of ZelaaPayAE (ZPAE) and ZelaaNFT (NFTZ) has decreased by 99% since its launch.
Arora is behind the creation of tokens of such celebrities as Floyd Mayweather, Caitlyn Jenner, Iggy Azalea, Jason Derulo, Lil Pump, and others.
The report said he controlled a 25% to 40% share of the supply of these memecoins. After entering the market and receiving celebrity endorsements, he sold the assets for a substantial profit.
Bubblemaps stated that Arora was releasing new assets on the pump.fun platform almost daily, claiming to be related to celebrities. But it is difficult to bring him to justice.
The X social network team has blocked the @Habibi_Comm account associated with the memecoin promoter.
Source:Bloomberg Law